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Business License Agreement Template for Malaysia

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Key Requirements PROMPT example:

Business License Agreement

"I need a Business License Agreement for my software development company to license our proprietary project management system to Malaysian businesses, starting from March 2025, with strong IP protection clauses and the ability to provide remote technical support."

Document background
The Business License Agreement serves as a crucial legal framework for businesses seeking to expand their operations through licensing in Malaysia. This document is essential when a business owner (licensor) wishes to permit another party (licensee) to use their established business system, brand, technology, or methodology while maintaining control over how their business concept is implemented. The agreement must comply with Malaysian legal requirements, including the Contracts Act 1950, Companies Act 2016, and relevant intellectual property laws. It typically includes detailed provisions for operational standards, quality control, territory rights, royalty payments, and compliance with local regulations. This type of agreement is particularly relevant for businesses expanding within Malaysia or international companies entering the Malaysian market through local partnerships.
Suggested Sections

1. Parties: Identification of the Licensor and Licensee with full legal names and registered addresses

2. Background: Context of the agreement, brief description of the business and purpose of the license

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Grant of License: Scope of the license, territory, exclusivity/non-exclusivity, and permitted uses

5. License Fees and Payment Terms: Financial terms, payment schedule, calculation of royalties if applicable

6. Term and Renewal: Duration of the agreement and conditions for renewal

7. Obligations of the Licensor: Licensor's responsibilities, support, and maintenance obligations

8. Obligations of the Licensee: Licensee's responsibilities, operational requirements, and compliance obligations

9. Quality Control: Standards and requirements for maintaining quality of licensed business operations

10. Intellectual Property Rights: Protection and ownership of IP, usage restrictions, and infringement procedures

11. Confidentiality: Protection of confidential information and trade secrets

12. Termination: Grounds for termination, notice requirements, and post-termination obligations

13. Governing Law and Jurisdiction: Malaysian law as governing law and jurisdiction for dispute resolution

14. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement

Optional Sections

1. Training and Support: Include when the license includes ongoing training or technical support services

2. Marketing and Promotion: Include when specific marketing requirements or restrictions apply

3. Insurance Requirements: Include when specific insurance coverage is required for the licensed business

4. Environmental Compliance: Include for businesses with environmental impact considerations

5. Halal Certification: Include for food-related or Islamic-compliant business requirements

6. Data Protection: Include when the business involves handling personal data

7. Sub-licensing Rights: Include when sub-licensing is permitted

8. Import/Export Compliance: Include for businesses involving international trade

9. Force Majeure: Include specific force majeure provisions relevant to the business type

Suggested Schedules

1. Schedule 1 - Licensed Business Description: Detailed description of the licensed business, products, or services

2. Schedule 2 - Territory: Detailed description of the geographic territory covered by the license

3. Schedule 3 - Fee Schedule: Detailed breakdown of all fees, royalties, and payment terms

4. Schedule 4 - Brand Guidelines: Specifications for use of trademarks, logos, and brand elements

5. Schedule 5 - Quality Standards: Detailed quality control requirements and standards

6. Schedule 6 - Operating Procedures: Standard operating procedures and business processes

7. Schedule 7 - Required Permits and Licenses: List of regulatory permits and licenses required for operation

8. Schedule 8 - Training Program: Details of initial and ongoing training requirements

9. Appendix A - Approved Suppliers: List of approved suppliers if required for the business

10. Appendix B - Reporting Templates: Standard forms for required business reports and updates

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





























Clauses


























Relevant Industries

Retail

Food and Beverage

Technology

Manufacturing

Education

Healthcare

Professional Services

Hospitality

Franchise Operations

E-commerce

Financial Services

Telecommunications

Relevant Teams

Legal

Commercial

Business Development

Operations

Finance

Compliance

Intellectual Property

Risk Management

International Business

Strategy

Relevant Roles

Legal Counsel

Business Development Manager

Commercial Director

Chief Executive Officer

Operations Manager

Compliance Officer

Intellectual Property Manager

Licensing Director

Chief Financial Officer

Contract Administrator

Business Owner

Franchise Manager

Regional Director

Managing Director

Risk Manager

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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